Artificial Intelligence Enabled Mobile Trading Applications and Green Investment Decision Making: The Mediating Role of Investor Overconfidence Evidence from Pakistan.
Abstract
Artificial Intelligence (AI)-enabled mobile trading applications have transformed investment decision-making by providing personalized recommendations, predictive analytics, and real-time market insights. Despite these technological advancements, investor behavior continues to be influenced by psychological biases, particularly investor overconfidence. At the same time, the growing emphasis on environmental sustainability has increased the importance of green investment decision-making. This study examines the effect of AI-enabled mobile trading applications on green investment decision-making and investigates the mediating role of investor overconfidence among retail investors in Pakistan. The study integrates the Technology Acceptance Model (TAM) and Behavioral Finance Theory to explain how technology adoption and behavioral bias jointly influence sustainable investment decisions. A quantitative, cross-sectional research design is employed, and data are analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The findings reveal that AI-enabled mobile trading applications have a significant positive effect on both investor overconfidence and green investment decision-making. Investor overconfidence also positively influences green investment decisions and partially mediates the relationship between AI-enabled mobile trading applications and green investment decision-making. These results indicate that AI influences sustainable investment behavior both directly and indirectly through investors' psychological confidence. The study contributes to the literature by integrating AI, behavioral finance, and sustainable finance into a unified framework. It also provides practical implications for FinTech firms, brokerage companies, and policymakers to develop AI-enabled investment platforms that encourage informed and sustainable investment decisions while addressing the behavioral effects of investor overconfidence.
Keywords: Artificial Intelligence, AI-enabled Mobile Trading Applications, Investor Overconfidence, Green Investment Decision-Making, Behavioral Finance, Pakistan.
